AN ACT TO AMEND TITLE 5 OF THE DELAWARE CODE RELATING TO LIMITATIONS ON PLEDGING OR HYPOTHECATING ASSETS OF BANKS AND TRUST COMPANIES.

This Act amends § 918 of Title 5 of the Delaware Code, which sets forth limitations on pledging or hypothecating assets of banks and trust companies, to modernize these limitations to apply to the current practices of banks and trust companies while not affecting the safety and soundness of banks and trust companies. Section 1. This section amends § 918 of the Delaware Code (i) to clarify that the limitations in § 918 apply to pledges and hypothecations to secure guarantees, credit exposures, or other potential liabilities in addition to borrowings; (ii) to exclude from the limitations in § 918 any pledge, hypothecation, repledge, or rehypothecation by a bank or trust company supervised by a federal banking agency if the pledge, hypothecation, repledge, or rehypothecation is permitted under applicable federal law or regulations or orders promulgated thereunder by the federal banking agency; and (iii) to make technical changes to update § 918 to conform to the standards of the Delaware Legislative Manual.